AuraBlocks introduces Blockchain to credit system

Blockchain AuraBlocks, a consulting company, confirmed that it used the Oracle Blockchain Cloud Service for an advanced credit system
04 December 2017   254

The lending system has always had a shortcoming because of financial accountability, which is why creditors faced high transaction costs that were spent on maintaining the system.

With the introduction of the blockchain system, which introduced even more transparency due to decentralization and increased protection against malicious software, it has also been used in the credit sector.

According to Kieran Murthy, technical director of Aurablocks, the Oracle Blockchain Cloud Service was created on the basis of The REST API and Hyperledger Fabric 1.0, which provides ease of integration. Previously, processing of all the data took about two weeks, now it takes only a couple of hours.

Oracle Blockchain Cloud Service on the way to creating an ideal operating scheme that will protect creditors from fraud. This solution will attract more deals and improve the quality of consolidation accounts.

According to calculations by Venkatesh Bala, the main specialist in Biz2Credit issues, AuraBlocks technology will be able to cut costs for data processing by 25%, which is $ 1 billion.

Testing the idea from Aurablocks demonstrated how blockchain technology can contribute to business optimization. Thus, lower operating costs will result in low rates offered to lenders.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   55

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.